Articles Tagged with albany estate planning

Once a tool for extremely wealthy individuals, trusts have gained in popularity over recent decades. Changes in laws governing trusts and the development of new approaches to estate planning have made trusts an invaluable tool for many working class families to ensure they are able to provide financial security to their loved ones. A trust can help make sure that your assets are distributed according to your wishes in a variety of different ways, some of which are discussed below. An experienced estate planning attorney can review the various types of trusts that you may be eligible for and can help you determine the right type and structure to achieve your estate planning goals.

Trusts Can Avoid Probate

The majority of trusts are established during a person’s lifetime, and these trusts will be eligible to avoid the probate process. While the New York probate process is less difficult than the probate process in other states, it can still be time-consuming and costly. Trusts are an effective way to allow loved ones to access the assets you wish to distribute to them without waiting for the probate process to be complete. Ultimately, this saves you time and money in addition to keeping assets within the trust out of the public record associated with the probate process.

In the second part of our series on the topic of things you need to do when a loved one dies, we will explore some of the things that should be addressed within roughly six months of the death of a loved one. Again, these lists are not exhaustive. However, they can help you start to think about the various issues that need to be addressed.

Notify Social Security

Within one month after the death of a loved one, the United States Social Security Administration needs to be informed of their death. They will have to put various processes in motion that stop social security and other benefit payments from continuing. Failure to do so could result in identity theft, or even if liability for repayment of such benefits. Depending on your relationship with the deceased and their benefits, you could also be eligible for survivor benefits that can have a significant positive impact on your everyday life.

Death is a challenging subject, even more so when we are confronted with it directly. When a loved one dies, it is an immeasurably difficult experience. People experience a range of emotions, and often it can be hard to understand what to do next. In this series, we will explore some of the important steps you need to take after experiencing the death of a loved one. While these are not exhaustive lists, the first part of this series is dedicated to helping you understand some of the things that need to be addressed as soon as possible after the death of a loved one. It is not easy to bring yourself to undertake some of these tasks, but being aware of how crucial many of them are is an important part of finding ways to accomplish them – either personally or by enlisting the help of someone your trust.

Safeguard Property and Secure Arrangements

Depending on the circumstances surrounding a person’s death, it may become crucial to ensure that any property they have left behind is properly secured. This may include their home and/or their vehicle. You will want to make sure everything is locked and stored appropriately, that utilities are shut off, and that anything potentially dangerous to others has been properly taken care of.

Today, financial planning and estate planning are inherently intertwined in a number of different ways. Comprehensive estate planning requires responsible financial planning, and responsible financial planning will create assets which comprehensive estate planning will help you protect. One of the world’s most important assets is our children. Once children enter the picture, their future becomes one of the most important focuses of a parent. To that end, one of the most important aspects of a child’s well-being is their education and a college savings plan – typically known as a 529 plan – can be an integral part of financing higher education opportunities, which makes it an important part of your estate planning considerations, too.

Understanding 529 College Savings Plans

A 529 college savings plan is a state-sponsored program that enables parents or other interested individuals to set aside money each year to eventually help offset the rising costs of higher education. These plans are meant for long-term contributions that build the amount by collecting earnings on the principal you contribute to the plan. Eventually, you can make penalty-free withdrawals from the plan as long as you are using those withdrawals to pay for qualified educational expenses. These withdrawals may even be made directly to a school for such expenses. Some states offer various types of plans, but most of them accomplish the same goal.

For many people, pets are more than just entertainment. They can easily become part of your family, making memories more special and providing endless enjoyment for their human companions. Given the important role pets play in our lives, it is important to consider them when engaging in estate planning. This is especially true when an individual has a less traditional pet or a pet with special needs that may require extensive care were the pet’s human companion to pass. There are several ways to ensure that your pet or pets are taken care of should something happen to you.

Pet Provisions

While we may view pets as being a member of the family, the law sees them as property. Therefore, it is important to make sure that you include specific provisions in your Will that name the person or persons that will be responsible for caring for your pet. You will also have the opportunity to set aside funds for pet care in your Will. It is important to be specific about whom should inherit your pet as well as what assets you ill bequeath them, if any. It is also a good idea to discuss pet care with the person you have in mind prior to naming them in your Will to determine whether or not they are in a position to adequately care for your pet.

For the most part, most of your comprehensive estate planning is aimed at making sure other people are taken care of after your death. However, providing for others is not the only goal of estate planning in today’s world. As we begin to live longer lives, we must also take our own potential needs into consideration when designing an estate plan. Recently, Forbes ran an article that pointed out many people make a huge mistake when engaging in estate planning: they forget to plan for their own well-being. In other words, an important part of your estate plan is making sure you put mechanisms in place to address scenarios where you may become seriously ill or disabled, or for circumstances where you may require long-term care. The following important documents should be part of everyone’s estate plan.

Advanced Health Care Directive

An advanced health care directive allows you to nominate an individual that can make decisions about your healthcare should you become incapacitated or otherwise unable to make such decisions on your own. The amount of leeway given to this nominee depends on how you structure the directive, which means that you can make it as narrow or as broad as you would like. These work in tandem with living wills, which can be used to explain the type of medical treatment you do and do not want to receive in certain circumstances. Together, these forms can help spare family members and other loved ones from making difficult decisions that may be contrary to your wishes because they enable you to clearly convey your views on medical care.

For a long time, Medicaid has had the reputation of being a program that provides insurance and other benefits to poorer individuals throughout the United States. In some ways, recent contentious debates have deepened that image. However, a recent article from Business Insider points out that this is simply not true. In fact, Medicaid often plays a crucial role in estate planning for those in nursing homes or in need of various other forms of long-term care.

Medicaid and Long-Term Care

The article notes that the average price of long-term care options for senior citizens have risen approximately 19 percent since 2011. That is far greater than the amount of social security or pension increases that accompany the increase in these costs. Given that people are living longer lives and that the cost of long-term care is constantly on the rise, this should not be surprising. According to the article, about 28 percent of Medicaid funds are used to finance long-term care costs.

Whether you are choosing an executor for your Last Will and Testament or a trustee for a trust you have established, it is clearly important to make the right decision. You want to choose someone trustworthy, responsible, and capable of carrying out the responsibilities being entrusted to them. That is often easier said than done, but the following tips adapted from the American Association of Retired Persons might be able to provide some guidance.

You Do Not Need an Expert

We all have a natural desire to want to work with the best when it comes to important matters. While experience in trusts and estates is beneficial, it is not required to properly and responsibly execute the duties associated with being an executor or trustee. Common sense can provide a solid foundation to perform these duties, and you may prefer a more intimate relationship with the person you are naming than you might get with a professional. In some situations, it may be best to choose a corporate trustee from an institution like a bank. However, many individuals can avoid doing this by selecting a reasonable person – which will also help you avoid the professional fee that may be associated with these services.

Among the many new trends emerging in a variety of places around the world is the idea of micro-living. The idea behind micro-living is to minimize the space you live in and consequently minimize associated costs, and potentially your impact on the environment. However, it is the reduction in cost that is most appealing to many people. Retirees are no exception to this, and a recent article from CNBC indicates that micro-living is becoming increasingly popular among elderly individuals looking to remain independent while minimizing their responsibilities and maximizing their savings potential.

Benefits of Micro-Living

Affectionately referred to in the article as “granny pods,” micro homes for senior citizens are typically several hundred square feet. This makes them small enough to fit in the backyards of most homes. These “granny pods” have all of the comforts of a normal home, just on a smaller scale. They allow senior citizens to maintain a sense of independence without having to actually move in with family or friends. This can be a welcome relief for both elderly individuals as well as their families that may not necessarily be looking to live together full-time. These micro homes typically have a bathroom, bedroom, kitchen, and potentially several other rooms depending on the size and experience you are looking for. They can be built to minimize obstacles that could be hazardous to older individuals, such as being built with flat floors to minimize the potential to trip or with modified showers to enable safer hygiene.

Nobody likes thinking about serious illness, especially a serious illness that could lead to death. Unfortunately, such illnesses can cause massive financial difficulties for friends and loved ones which can in turn significantly deplete the assets you had been planning to leave to your heirs. The moral of the story is that, no matter your age, it is never too early to start planning for the potential need for end-of-life care. The following tips are adapted from a recent article on this topic found in USA Today, and they may provide you with some important concepts to consider when thinking about healthcare issues.

Be Explicit About Your Wishes

Telling people in passing how you hope to be cared for in case of serious illness is important, but it isn’t necessarily always enough. It is important to write down your wishes and be explicit about how you wish your health care to be handled. You should also work with your estate planning attorney to create documents such as health care proxy nominations and/or a living will that express your healthcare wishes in detail.

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